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TMI Blog2018 (11) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... pon assessee and the same, in our opinion, has remained unfulfilled. Therefore, the stand of first appellate authority, under the circumstances, in making estimated additions, was quite fair and justified. However, keeping in view the overall factual matrix including VAT rates, we find that estimation to be slightly on higher side and therefore, we reduce the same to 8%. Secondly, upon perusal of details, it is noted that the net amount of expenditure [excluding VAT] as debited by the assessee in the profit & loss account aggregates to ₹ 47,92,345/-. Therefore, by modifying the impugned order, we restrict the impugned additions to 8% of net alleged bogus purchases of ₹ 47,92,345/- which comes to ₹ 3,83,388/-. - Decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e : Shri D.G. Pansari- Ld. DR ORDER Per Manoj Kumar Aggarwal (Accountant Member) 1. These are cross appeals for Assessment Year [AY] 2011-12 which contest the order of Ld. Commissioner of Income Tax (Appeals)-3, Mumbai, [CIT(A)], Appeal No.CIT(A)-3/IT-98/DCIT-1(3)/14-15 dated 29/3/2017. The assessee is aggrieved by confirmation of estimated disallowance on account of alleged bogus purchases disallowance of certain foreign education expenses whereas the revenue is aggrieved by grant of relief on account of alleged bogus purchases. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax-1(3), Mumbai [AO] u/s 143(3) on 20/03/2104 wherein the income of the assessee was assessed at ₹ 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious exhibitions, seminars, conferences, in house meetings etc. and there was continuous requirement of stationery items, brochures, dairies, key-chains etc. on regular basis which was purchased from the above parties and therefore, the purchases were genuine and the expenditure was meant for business purposes only. However, for want of production of the suppliers and for want of proper documentary evidences viz. delivery challans, transport receipt, octroi receipts etc. evidencing delivery of material, the said purchases were disallowed by Ld. AO and added to the income of the assessee. 2.2 The second addition stems from the fact that the assessee claimed foreign education expenses of Chairman and Managing Director, Shri Nakul Toshniwal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Representative for assessee [AR], draws strength from the fact that the assessee purchased stationery items and sales promotion material from the aforesaid suppliers as per the business requirements and the purchases were genuine. Our attention is also drawn to the fact that these expenditure were regularly being incurred by the assessee over past several years which has been accepted by the revenue. The addition on account of foreign education expenses has been assailed on the ground that the said expenditure fulfilled the conditions of Section 37(1) and further, the similar disallowance in immediately succeeding AY has been deleted by the first appellate authority itself, finding strength in assessee s claim. Per Contra, Ld. Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we reduce the same to 8%. Secondly, upon perusal of details, it is noted that the net amount of expenditure [excluding VAT] as debited by the assessee in the profit loss account aggregates to ₹ 47,92,345/-. Therefore, by modifying the impugned order, we restrict the impugned additions to 8% of net alleged bogus purchases of ₹ 47,92,345/- which comes to ₹ 3,83,388/-. The revenue s appeal stand dismissed whereas this ground of assessee s appeal stand partly allowed. 6. So far as the disallowance of foreign education expenses is concerned, we find that the same has been incurred in relation to knowledge enhancement of the key personnel of Assessee Company namely Nakul Toshnival aged around 36 years. The undisputed facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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